Orsted acquires Rhode Island offshore wind business for $510 million

On Monday, a Denmark based power company Orsted has announced “The acquisition of 100 percent equity stakes in the offshore wind business of U.S based D.E Shaw Group for $510 million.”

In the statement issued by Orsted, the company has said that “Rhode Island-based Deepwater Wind is responsible for the only operational offshore wind farm in the U.S, with the 30 megawatts (MW) Block Island facility.”

“Deepwater Wind’s portfolio has a total potential capacity of approximately 3.3 gigawatts (GW), including offshore wind development projects in Rhode Island, Connecticut, Maryland, and New York,” Orsted added.

Quoting to the deal, Martin Neubert CEO of offshore wind has said “With this transaction we’re creating the number one offshore wind platform in North America, merging the best of two worlds: Deepwater Wind’s longstanding expertise in originating, developing and permitting offshore wind projects in the US, and Orsted’s unparalleled track-record in engineering, constructing and operating large-scale offshore wind farms. Today’s announcement consolidates Orsted’s position as the global market leader in offshore wind with a strong foothold across Europe, North America, and Asia-Pacific.”

“D.E. Shaw & Co. has been a dedicated owner of Deepwater Wind with a vision to pioneer offshore wind in the US and being at the innovative forefront of technology investment. We are excited to continue this journey and take the industry to the next level,” he added.

Thomson Brostrom, CEO of Orsted US Offshore Wind and President of Orsted North America said: “Deepwater Wind has done a fantastic job as a first-mover in US offshore wind, and I look forward to joining and integrating the two US organizations. We have exciting times ahead of us delivering large-scale clean energy projects to households and businesses along the Eastern Seaboard. Orsted will maintain a strong presence in Massachusetts and Rhode Island and will, of course, honor the local commitments associated with Deepwater Wind’s projects along the East Coast.”

D.E Shaw & Co’s Managing Director Bryan R Martin has said that “I am deeply grateful to the many people who have made Deepwater Wind so successful and I’m excited to see what the largest and most innovative offshore wind company in the US can do when it’s merged with the largest and most successful offshore wind company in the world. I’m truly proud that offshore wind’s global leader can now author the next chapter for Deepwater Wind. Together – they’ll continue to make history.”

The transaction is subject to clearance by the US competition authorities and is expected to close by end of 2018.